Silver Price Daily Forecast – Test Of Support At $26.30

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Published: Apr 22, 2021, 13:48 UTC

Silver did not manage to get above the resistance at $26.65 and is testing the support at $26.30.

Silver Pulls Back As Treasury Yields Move Higher

Silver is currently trying to settle back below the support at $26.30 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index is testing the support level at 91. It has recently made several attempts to settle below this level but failed to develop sufficient downside momentum. In case the U.S. Dollar Index declines below the support at 91, it will move towards the next support at 90.70 which may provide more support to silver and gold price today.

Meanwhile, Treasury yields gained upside momentum after an unsuccessful attempt to settle below multi-week lows which served as a bearish catalyst for precious metals.

Gold did not manage to settle above the resistance at $1800 and pulled back. The nearest significant support level for gold is located at the 50 EMA near $1765. In case gold gets to the test of this level, silver will find itself under more pressure.

Gold/silver ratio has managed to settle below the 68 level. If gold/silver ratio moves towards the major support level at 67, silver will get more support.

Technical Analysis

Silver failed to settle above the resistance at $26.65 and declined towards the support at $26.30. In case silver manages to settle below this level, it will head towards the next support at $25.85.

A successful test of the support at $25.85 will push silver towards the 50 EMA at $25.75. The 20 EMA is located in the nearby so silver will likely get material support in this area. A move below the 20 EMA will open the way to the test of the support at $25.55.

On the upside, silver needs to get above the resistance at $26.65 to continue its upside move. If silver settles above this level, it will head towards the next resistance at $27.00. A successful test of the resistance at $27.00 will push silver towards the resistance level which is located at $27.50.

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About the Author

Vladimir Zernovauthor

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.